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For personal use only appen ASX ANNOUNCEMENT 26 August 2021 Appen 2021 Half Year Results Appen Limited ( ASX : APX ) a global leader in the development of high - quality annotated datasets for machine learning and artificial intelligence , has today announced its results for the half year ended 30 June 2021.1 All amounts in US $ , unless stated otherwise • • • • Group revenue of $ 196.6M , down 2.0 % , due to lower Global Services revenue as Global customers² allocated resources to new , non - advertising projects in the first half of 2021 Global Product revenue of $ 22.3M , up 15.2 % , as Global customers invested in new Al use cases supported by Appen's annotation platform and tools New Markets revenue of $ 47.8M , up 31.5 % , driven by China , new Enterprise customer wins and product - led growth Acquisition of Quadrant , a global leader in mobile location and Point - of- Interest data , further extends our product offering • China continued to grow strongly , with 1H21 revenue 5.8x 1H2O revenue Annual contract value ( ACV ) of $ 119.6M , up 16 % • • Underlying EBITDA³ of $ 27.7M , down 14.3 % , due to higher costs related to growth investments $ 66M in cash at 30 June 2021 Interim dividend of A $ 4.5 cps , 50 % franked , flat on 1H2O dividend Appen's Chief Executive Officer Mark Brayan said , “ As expected , our first half results were impacted by our global technology customers ' focus on new Al products and applications , as they broaden their revenue base outside of digital advertising and respond to data privacy changes . This resulted in lower ad - related services revenue , but higher product revenue as Global customers used our market - leading annotation platform and tools for new Al use cases . " " We expect these new programs to grow and augment our ad - related programs as our Global customers rely on our expertise and product capabilities to help them develop the breakthrough Al - driven products of the future , " he added . " Our investments in product development , engineering and sales also supported strong revenue and customer growth in New Markets and provide a foundation for further growth . " 1 All comparisons are to the half year ended 30 June 2020 , unless stated otherwise . 2 Major US technology companies . Underlying EBITDA excludes restructure costs , acquisition related share - based payment expenses and transaction costs , and for 1H2O , fair value ( consideration ) adjustments for the Figure Eight acquisition . Appen Limited , 9 Help Street , Chatswood , NSW 2067 , Australia | ACN 138 878 298 1